As a global company with a variety of highly innovative business fields, the Merck Group is exposed to potential risks as well as opportunities. The risk categories enumerated in the Risk Report found in the Annual Report for 2012 remain valid for the Merck Group in the current reporting period.
At present, the company is not aware of any risks that could jeopardize the continued existence of the Merck Group. The company has a group-wide risk management system in place to identify and mitigate potential risks. Merck continuously monitors business risks such as issues regarding liquidity, defaults on payables and receivables, currency and interest rates, market pricing, pension obligations, assessment of independent rating agencies, human resources and information technology. Regarding legal risks, Merck monitors a host of potential issues such as litigation regarding product liability, antitrust law, pharmaceutical law, patent law and environmental protection.
Merck continues to bear risks from certain proceedings against companies of the Generics business that was sold to Mylan in 2007. The British Office of Fair Trading issued a “Statement of Objections” to Merck. It is alleged that Merck or its former subsidiary Generics (UK) Ltd. engaged in anticompetitive behavior in connection with the delayed launch of a generic version of the antidepressant paroxetine.
In addition, the European Commission fined Merck for engagement in anticompetitive behavior in connection with the allegedly delayed market launch of a generic version of the product citalopram. Merck is considering filing an appeal with the European Court in Luxembourg.
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